SROI Analysis: Stage 6

Sep 29, 2020 | by Fajri

SROI Analysis: Stage 6 – Reporting, Using and Embedding

Although the process of calculating the SROI ratio is now complete, the final step is to make the findings of the analysis public and communicate with stakeholders. This is the final leg of the exercise. In this stage, you will take up the task of embedding the SROI process in your organization. Now is the time to make the most of all of your hard work. 

Read the previous stages here :

SROI Analysis: Stage 1 – Establishing Scope And Identifying Key Stakeholders 

SROI Analysis: Stage 2 – Mapping Outcomes

SROI Analysis: Stage 3 – Evidencing Outcomes and Giving Them Value

SROI Analysis: Stage 4 – Establishing Impact

SROI Analysis Stage 5: Calculating SROI

This stage involves three steps:

  • Reporting to stakeholders 
  • Using results 
  • Assurance

6.a Reporting to stakeholders 

It is extremely important to share the findings of the SROI analysis with your stakeholders and communicate the results in a manner that is most relevant and meaningful to them. You may want to explore more ways of communicating than just publishing the findings on the website, you may want to take a more personal approach. It all depends on the kind of groups you are dealing with. Some stakeholders may also be interested in knowing the process of the analysis besides the results. 

Apart from the financial aspect of the exercise, the SROI report should also include the qualitative and quantitative aspects to give a better idea about the social value that has been created by the activity. Finally, keep in mind that the report should speak of the changes brought about by the activity and explain the decisions made in the course of the analysis.

[bctt tweet=” Apart from the financial aspect of the exercise, the SROI report should also include the qualitative and quantitative aspects to give a better idea about the social value that has been created by the activity.” username=”artemis_impact”]

We had previously stated that it is important to back all your decisions with a strong rationale. It is now when this activity will come into play to assure that the calculations are robust and accurate.

Include information about the performance of your organization to facilitate strategic planning. Make a prudent decision about what all would you like to include in your report. 

Take into account commercial sensitivities and ensure meeting principles of transparency and materiality. Your report must be short, concise, comparable, comprehensive, and well-structured. Your findings must be presented in a balanced fashion, communicating the positives and the negatives in a transparent yet sensitive fashion. 

The following must figure in your final report:

  • Information about your organization – its work, key stakeholders, and activities
  • Description of the scope of the analysis, stakeholders involved, methods of data collection
  • Assumptions, limitations of the analysis
  • The impact map with all relevant indicators and proxies
  • Relevant findings from participants 
  • Details of the process of calculation, explanation of estimates and assumptions
  • A brief report on the sensitivity analysis and how different assumptions and elements affected social returns  
  • A section on decision-making, communicating the rationale behind including stakeholders, outcomes or indicators, and excluding others
  • An executive summary for a wider, general audience

Make sure you clearly distinguish between irrelevant benefits and those which may not be visible or evidence at the moment but play a vital role in the long haul.

Tip: Social ratio is simply a figure, a representation of all your analysis. It must be presented along with the complete story of the relevant, material changes being brought about by the activity and its impact on parties involved. 

“Include findings, analysis, and recommendations as to what the organization can learn from the information generated through the entire SROI process,” Social Value UK states in its guide. 

6.b Using results

The entire purpose of carrying out an SROI analysis is to be able to use the findings. The analysis must communicate a story of change. It could be for the investors, stakeholders, those who work for your or the community at large. There will also be implications for your organization.

In the case of a forecast analysis, the result may help you review your planned activities and make relevant changes to maximize the social value that you aim to achieve. It may also help in revisiting the process undertaken to arrive at data and information related to deadweight, drop-off, attribution, outcomes, et cetera., and bring about a change in them, if necessary. 

With this kind of analysis, you can also engage with your stakeholders about their intended outcomes and what they value. You may also work with partners to explore attribution.

When it comes to an evaluative SROI analysis, the results culminate into changes in your organization. You must be able to look at the result and assess how it impacts your objectives, governance, systems, and working practices. Make sure to act on recommendations and embed the result of the analysis in your strategic planning process. 

Communicate the findings, the ratios with the stakeholders and relevant parties but also be watchful of fact how these change over time. It will be your window to understand whether your activities are improving or not and how you can work to maximize social value in the future.

At this point, you may also want to secure a commitment to further SROI analysis. Present the findings to various stakeholders and parties involved, emphasize the benefits as well as the challenges of carrying out the process. You can also present a plan for making SROI analysis a routine exercise. It can include the following:

  • Process for regular data collection, particularly for outcomes
  • Process for training staff 
  • Timeline for the next SROI analysis
  • Description of the resources required for ongoing monitoring of SROI
  • A process on how data security will be ensured

Give yourself some time and allow the organization to grasp the findings of the analysis and adapt to the recommendations. Involve your stakeholders throughout the process. It will be a good idea to allocate the responsibility for future SROI analysis. Once the data collection mechanisms are in place, the responsibility of future analysis can be allocated to a team within the organization – for example, the finance department – could be outsourced or a dedicated section could be created for the purpose. Changes will take time to implement, so set a realistic timeline.   

Tip: As pointed out previously, a mere comparison of SROI ratios will not serve any purpose. Your report must briefly exhibit the process behind the analysis, the choices made, and those discarded – all of this backed by proper rationale. Comparing ratios over a period of time will help in analyzing the improvements that the organization is making. You should be able to communicate the findings in a fashion which is most relevant to a range of stakeholders. “There must be an independent assurance of the information,” Social Value UK suggests. Prepare a plan to use the findings and embed the process within your organization.

6.c Assurance

This brings us to the last step which deals with verifying the information and data mentioned in the report. It states that there should be an appropriate independent assurance of the claims presented in your report. There are two levels of assurance: 

Type 1 focuses on the assurance that the analysis has complied with the principles of good practice in SROI. Type 2, on the other hand, covers assurance of both principles and data in the report. 

The source for this information is SVI’s SROI analysis guides. If you have any questions, feel free to contact us at contact@artemis.im

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